Eveready Industries India Limited

Industrials — Electrical Equipment & Parts · NSE

₹321.80+₹3.10 (+0.97%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Eveready Industries India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Eveready Industries India Limited manufactures and markets dry cell batteries, flashlights, and lighting and electrical products in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,460

Annual revenue₹1,438 Cr

How does it make money?

Turns over ₹1,438 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,460 employees supports ₹98.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 27.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +9% while net margin moved +470% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+9%

Margin effect+470%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.56 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.1x

3Y Median

37.2x

40 monthly readings · mean 51.1x · range 13.6x–111.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 65% below its 3y median of 37.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 88.8x.

vs. its own history

Cheap

37.2x median over 40 months · -65%

vs. sector peers

Cheap

88.8x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

15.2x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 7.9% to 11.6% over 3 years.
Debt is being paid down
Total debt is down 49% over 3 years.
Return on equity is rising
ROE has improved from 8.6% to 27.5%.
Return on capital is rising
ROCE has improved from 15.4% to 23.8%.
High return on capital employed
ROCE of 23.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.9% to 11.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 49% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 65% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 2.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 11.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 2.9% CAGR
Latest reported year was 9.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 23.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹2,339 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.1x

Cheap

Cheap against the generic band

P/B Ratio

3.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹24.52

Profitable

Profitable on a per-share basis

ROE

27.5%

Strong

Strong capital efficiency

ROCE

23.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

9.0%

Modest

Modest growth

Profit Growth (YoY)

22.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.78%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.2%

Average

Average margins

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

321.9 / 335.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,320 Cr	₹1,300 Cr	₹1,331 Cr	₹1,438 Cr	+2.9%
EBITDA	₹104 Cr	₹144 Cr	₹153 Cr	₹167 Cr	+17.0%
EBITDA Margin	7.9%	11.0%	11.5%	11.6%	—
PAT (Net Profit)	₹28 Cr	₹67 Cr	₹82 Cr	₹172 Cr	+83.8%
EPS	₹3.8	₹9.18	₹11.34	₹23.6	+83.8%
ROE	8.6%	17.3%	17.9%	27.5%	—
ROCE	15.4%	20.1%	19.0%	23.8%	—
Total Debt	₹398 Cr	₹307 Cr	₹312 Cr	₹202 Cr	-20.3%
Free Cash Flow	₹12 Cr	₹120 Cr	₹33 Cr	-₹11 Cr	—

🟢 Revenue has grown at 2.9% a year over 3 years.

🟢 EBITDA has grown at 17.0% a year over 3 years.

🟢 EBITDA Margin has risen from 7.9% to 11.6% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 83.8% a year over 3 years.

🟢 EPS has grown at 83.8% a year over 3 years.

🟢 ROE has risen from 8.6% to 27.5% over 3 years (+18.9 pts).

🟢 ROCE has risen from 15.4% to 23.8% over 3 years (+8.4 pts).

🟢 Total Debt has shrunk at 20.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,214 Cr

Total Liabilities

₹591 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹83 Cr

Capex

-₹95 Cr

Shareholding (proxy)

Institutional Holding

7.5%

Insider Holding

59.6%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

04 Aug 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive2 mixed2 general

Eveready Industries Share Price

Upstox, 16 Oct

Eveready Industries Schedules July 16 Investor Meet Amid 50% Market Share Dominance

Sahi, 10 Jul

Eveready Industries India Share Price Target 2026: Rs 380 Analyst Forecast

Univest, 09 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Eveready Industries Q1 Results: Profit Rises 22%, Margin Expands

NDTV Profit, 08 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Eveready Industries India Limited Schedules Board Meeting for Q4FY26 Financial Results on April 30, 2026

scanx.trade, 30 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Eveready Q4 profit surges over 13x, driven by 82% alkaline battery growth

CNBC TV18, 30 AprResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑